Free Trade Agreement Assignment | Homework For You

A free trade agreement is a treaty between two or more countries that establishes free trade of goods and services that has no tariffs or barriers. The United States has entered several of these over the past 20 years to increase the trade of goods and services with foreign countries.

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 In February 2009, a free trade agreement was established between the United States and Peru called the Peru Trade Promotion Agreement. Some of the key points of the PTPA are; new opportunities for U.S. farmers and ranchers, commitments and cooperation to protect the environment, strong protections for U.S. investors, and expanded access to services markets. U.S. Under the agreement, exports of U.S. consumer and industrial product imports are duty-free immediately and remaining tariffs to be phased out in ten years.

More than two-thirds of current U.S. farm exports and immediately duty-free. Many sanitary and phytosanitary and technical standards issues that blocked U.S. exports of beef, pork, and poultry products are resolved, which allow the importation of these products. Textiles and apparel are immediately duty-free, expected to promote new opportunities for U.S. and Peruvian fiber and apparel manufacturing industries. Peru agrees to dismantle barriers on services and investments giving market access to U.S. firms. Parties commit to better enforce their own domestic environmental laws and to address the environmental and economic consequences of trade associated with illegal logging and illegal trade in wildlife. The intent of this agreement was to benefit U.S. and Peruvian economies and to contribute to political stability in the Western Hemisphere. Get Economics homework help today

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